Internal Revenue Bulletin:  2006-13 

March 27, 2006 

Rev. Rul. 2006-15


Table of Contents

LIFO; price indexes; department stores. The January 2006 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 2006.

The following Department Store Inventory Price Indexes for January 2006 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, January 31, 2006.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted)
Groups Jan. 2005 Jan. 2006 Percent Change from Jan. 2005 to Jan. 20061
1. Piece Goods 494.0 436.7 -11.6
2. Domestics and Draperies 536.5 506.9 -5.5
3. Women’s and Children’s Shoes 643.3 671.3 4.4
4. Men’s Shoes 840.6 868.1 3.3
5. Infants’ Wear 578.4 555.2 -4.0
6. Women’s Underwear 515.2 545.6 5.9
7. Women’s Hosiery 338.9 341.3 0.7
8. Women’s and Girls’ Accessories 560.4 555.4 -0.9
9. Women’s Outerwear and Girls’ Wear 333.3 325.7 -2.3
10. Men’s Clothing 534.9 516.8 -3.4
11. Men’s Furnishings 561.9 555.5 -1.1
12. Boys’ Clothing and Furnishings 414.9 396.5 -4.4
13. Jewelry 879.0 868.9 -1.1
14. Notions 784.4 794.2 1.2
15. Toilet Articles and Drugs 994.7 1010.7 1.6
16. Furniture and Bedding 604.9 603.9 -0.2
17. Floor Coverings 598.2 611.0 2.1
18. Housewares 711.8 699.4 -1.7
19. Major Appliances 202.6 204.3 0.8
20. Radio and Television 40.0 37.4 -6.5
21. Recreation and Education2 78.3 77.3 -1.3
22. Home Improvements2 135.6 138.0 1.8
23. Automotive Accessories2 113.8 117.2 3.0
         
Groups 1-15: Soft Goods 546.2 540.9 -1.0
Groups 16-20: Durable Goods 380.7 375.6 -1.3
Groups 21-23: Misc. Goods2 92.8 93.1 0.3
       
  Store Total3 487.2 482.8 -0.9
         
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.
         

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7924 (not a toll-free call).


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